Warimpex announces the partial sale of its hotel portfolio to the Thai investor U City. The Angelo Hotel by Vienna House located on Sokolska St. is one of the properties.
The transaction includes eight hotel participations – two of which are partially (50 per cent) owned by UBM – which comprise approximately 50 percent of Warimpex’s total real estate assets and which have a property value of approximately EUR 180 million. The stakes of UBM in that portfolio is worth EUR 17 million. The purchase price is in line with recent valuation opinions from June 2016 by independent property appraisers.
The selling price of the Angelo Hotel was not revealed, however the total worth of the Katowice facility and the Angelo Hotel Pilsen will be sold to the Thai investor for a total of EUR 34 million. The 4-star hotel in Katowice was opened in 2010 at 24 Sokolska St. and offers 203 rooms.
The purchase contract is still pending subject to the fulfilment of the standard closing conditions for such real estate transactions. Warimpex expects closing to occur by summer 2017. “Since 2015, the transaction markets in CEE for hotel investments have become increasingly attractive again. We are taking advantage of this positive momentum. The current sale will broaden our scope of action significantly and we are thus well prepared for new projects” – says Franz Jurkowitsch, Warimpex CEO. “We will use the proceeds from the sale to improve our capital structure and for new developments – potentially together with U City as a future partner, who takes a step into the CEE region for the first time. We continue to see our future in hotel and office developments in CEE and Russia, as the markets have matured and are developing further.” Poland will remain one of Warimpex’s core markets.
Also, Amber and Bocca, the two core shareholders of Warimpex, have signed an agreement to sell all their shares in Vienna House – the hotel management company which manages all of the sold eight hotel participations – to U City. The closing is also expected by summer 2017. All of the hotels are operated by Vienna House, which will continue to be responsible for the management after the sale.
U City is a listed Thai commercial property developer with 30 years of experience and a market capitalization of EUR 453 million. U City’s strategy is to acquire or develop recurring income properties near mass transit lines both locally and overseas. In April 2015, BTSG acquired a 35,64% stake in U City when it sold land plots and a hotel to U City in exchange for shares of the company. BTSG is a listed Thai conglomerate with a market capitalization of EUR 2,7 billion and the 26th largest company in Thailand by market capitalization.